Taiwan Depository & Clearing Corporation

On the occasion of the annual Mother's Day, many females who are busy with their careers and families also take on the role as “Family’s CFO” to manage household finances and investments. According to the statistics from The Big Data Warehouse Platform developed by TDCC, it has been found that mothers who are savvy at budgeting have also have highly interests in Exchange Traded Funds (ETFs) and invest in Taiwan Stock ETFs via the dollar-cost averaging (DCA) scheme.

According to the statistics from the The Big Data Warehouse Platform, in the first quarter of 2022, among female investors aged 40-54, the top 10 stock holdings included 3 financial industry stocks, 2 semiconductor industry stocks, 2 optoelectronic industry stocks, 1 electronic industry stock, 1 iron and steel industry stock, and 1 Taiwan stock ETF. The top 3 stock holdings are Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), China Steel Corporation (CSC), and United Microelectronics Corp. (UMC). However, in the first quarter of 2023, Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF (00878) ranked the third place stock holdings instead of UMC.

In recent years, due to limited financial resources, young people have chosen ETFs with relatively low price and high dividend yields as their top preference for investing in the Taiwan stock market. However, not only young people, but as of the first quarter of 2023, Taiwan stock ETFs have also made significant progress in the ranking of holdings among “mother” investors. The top 10 stock holdings included 3 Taiwan Stock ETFs, 2 semiconductor industry stocks, 2 financial industry stocks, 1 iron and steel industry stock, 1 electronic industry stock and 1 optoelectronic industry stock. The ranking is as follows: TSMC, CSC, Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF, Yuanta/P-shares Taiwan Dividend Plus ETF (0056), HON HAI (Hon Hai Precision Ind. Co., Ltd.), UMC, CDF(China Development Financial Holding Corp.), INX (Innolux Corporation), E.S.F.H (E.Sun Financial Holding Company, Ltd.), and Yuanta/P-shares Taiwan Top 50 ETF (0050).

Furthermore, in terms of DCA investing, Taiwan stock ETFs were particularly favored by “mother” investors. According to the statistics, there were 7 Taiwan stock ETFs among the top 10 rankings of the first quarter of 2022, with the top 3 being Yuanta/P-shares Taiwan Top 50 ETF, Yuanta/P-shares Taiwan Dividend Plus ETF, and TSMC. However, by 2023, the third place in DCA investing in Taiwan stock market shifted to Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF, displacing TSMC.

Overall, as of the first quarter of 2023, the top 10 DCA investing targets favored by “mother” investors are Yuanta/P-shares Taiwan Top 50 ETF, Yuanta/P-shares Taiwan Dividend Plus ETF, Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF, TSMC, Fubon FTSE TWSE Taiwan 50 ETF, E.S.F.H, MEGA FHC (Mega Financial Holding Company Ltd.), Fubon TWSE Corporate Governance 100 ETF, Cathay Taiwan 5G Plus Communications ETF, and Yuanta Taiwan High Dividend Low Volatility ETF. Among these, only TSMC, E.S.F.H, and MEGA FHC are individual stocks, while the rest are ETFs. This indicates the growing popularity of Taiwan stock ETFs as the most favored stock holdings among mothers.

According to the analysis from The Big Data Warehouse Platform of TDCC, the number of female shareholders aged 40 to 54 increased to 1.33 million in the first quarter of 2023, with an average stock holding value of NTD 1.79 million per person. Despite a 3.3% decline in the average stock holding value for “mother” investors due to the correction in the Taiwan stock market over the past year, the relatively lower prices have made the market more attractive for investment. As a result, the number of stockholders has increased by over 40,000. As of the first quarter of 2023, there are a total of 48 Taiwan stock ETFs listed on the market, with the assets under management surpassing the milestone of NTD 1 trillion, reaching NTD 1.0066 trillion. With the increasing popularity of ETFs investing, Taiwan stock ETFs, known for their high dividend yields, diversified stock risk, and relatively lower volatility compared to the overall market, have become favored by household CFOs. The willingness to increase their investments in Taiwan stock ETFs during market downturns is higher compared to individual stocks. This makes Taiwan stock ETFs an excellent choice for long-term and stable investments by “mother” investors.

For many mothers who also serve as the CFO of their families, while celebrating Mother's Day, the best solution in the face of an inflationary market environment is to practice cautious financial management, make DCA investing strategy, and have a long-term plan. It is important to make timely adjustments to asset allocation, ensuring that the education fund, travel plans, and retirement life are financially secure.